Rural and Regional Adjustment Amendment Regulation (No. 2) 2006 (Qld)

Queensland Rural and Regional Adjustment Amendment Regulation (No. 2) 2006 Subordinate Legislation 2006 No. 73 made under the Rural and Regional Adjustment Act 1994 Contents Page 1 Short title . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2 Regulation amended . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 3 Amendment of s 7 (Approval of schemes—Act, s 11) . . . . . . . . . 2 4 Insertion of new pt 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Part 4 Miscellaneous 8 Amendment of existing approved assistance scheme for primary producers—Act, s 54 . . . . . . . . . 2 9 Amendment of existing approved assistance scheme for small business—Act, s 54 . . . . . . . . . . . . 3 10 Expiry of pt 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 5 Amendment of schedule (Approved assistance schemes). . . . . . 4

s1 2 s4 Rural and Regional Adjustment Amendment Regulation (No. 2) 2006 No. 73, 2006 1 Short title This regulation may be cited as the Rural and Regional Adjustment Amendment Regulation (No. 2) 2006 . 2 Regulation amended This regulation amends the RuralandRegionalAdjustmentRegulation 2000. 3 Amendment of s 7 (Approval of schemes—Act, s 11) Section 7— insert— ‘(i) the Natural Disaster Relief—TC Larry (Primary Producers) Scheme set out in the schedule, part 9; (j) the Natural Disaster Relief—TC Larry (Small Business) Scheme set out in the schedule, part 10.’. 4 Insertion of new pt 4 After section 7— insert— ‘Part 4 Miscellaneous ‘8 Amendment of existing approved assistance scheme for primary producers—Act, s 54 ‘(1) The Natural Disaster Relief Assistance (Instantaneous for Primary Producers - Floods, Cyclones, Storms etc.) Scheme, a transitional scheme taken, under section 54 of the Act, to be an approved assistance scheme (the scheme ) is amended as stated in subsections (2) and (3). ‘(2) The scheme, item 5, before ‘Applicants’— insert— ‘5.1’. ‘(3) The scheme, at the end of item 5—

s4 3 s4 Rural and Regional Adjustment Amendment Regulation (No. 2) 2006 No. 73, 2006 insert— ‘5.2 A person is not eligible for assistance under this scheme if— (a) the person’s application for assistance relates to loss or damage suffered as a result of TC Larry; and (b) the person is eligible for, or has received, assistance under the Natural Disaster Relief—TC Larry (Primary Producers) Scheme set out in the RuralandRegionalAdjustment Regulation 2000 , schedule, part 9. ‘5.3 In this item— TC Larry means the cyclone known as Tropical Cyclone Larry that affected certain communities in North Queensland in March 2006.’. ‘9 Amendment of existing approved assistance scheme for small business—Act, s 54 ‘(1) The Natural Disaster Relief Assistance (Small Business) Scheme, a transitional scheme taken, under section 54 of the Act, to be an approved assistance scheme (the scheme ) is amended as stated in subsections (2) and (3). ‘(2) The scheme, item 5, before ‘Applicants’— insert— ‘5.1’. ‘(3) The scheme, at the end of item 5— insert— ‘5.2 A person is not eligible for assistance under this scheme if— (a) the person’s application for assistance relates to loss or damage suffered as a result of TC Larry; and (b) the person is eligible for, or has received, assistance under the Natural Disaster Relief—TC Larry (Small Business) Scheme set out in the RuralandRegionalAdjustment Regulation 2000 , schedule, part 10. ‘5.3 In this item—

s5 4 s5 Rural and Regional Adjustment Amendment Regulation (No. 2) 2006 No. 73, 2006 TC Larry means the cyclone known as Tropical Cyclone Larry that affected certain communities in North Queensland in March 2006.’. ‘10 Expiry of pt 4 ‘This part expires at the beginning of the day after it commences.’. 5 Amendment of schedule (Approved assistance schemes) Schedule— insert— ‘Part 9 Natural Disaster Relief—TC Larry (Primary Producers) Scheme ‘99 Definitions for pt 9 ‘In this part— applicant means a person applying for assistance under the scheme. appropriate Minister means the Minister responsible for administering the Disaster Management Act 2003 . closing day , for applications, means 31 December 2007. loan and grant package means assistance consisting of a loan and a grant out of the amount of the loan. natural disaster relief arrangements means the funding arrangements agreed between the Commonwealth and the State for providing financial assistance to communities affected by natural disasters. Note — At the commencement of this definition, the funding arrangements were described in the document called ‘Natural Disaster Financial Assistance Arrangements within Queensland 2005/2006’, published by the

s5 5 s5 Rural and Regional Adjustment Amendment Regulation (No. 2) 2006 No. 73, 2006 Department of Emergency Services and available on that department’s website at < prescribed disaster area means the area that the appropriate Minister has defined as the area affected by TC Larry to which relief measures under the natural disaster relief arrangements apply. Note — At the commencement of this definition, the area defined by the appropriate Minister as affected by TC Larry, by reference to the areas of stated local governments, was published on the authority’s website at < scheme means the scheme set out under this part. TC Larry means the cyclone known as Tropical Cyclone Larry that affected certain communities in North Queensland in March 2006. ‘100 Purpose of assistance ‘(1) The purpose of assistance under the scheme is to assist in meeting the needs of primary producers affected by TC Larry to recover from the impact of TC Larry. ‘(2) However, assistance under the scheme is not intended to compensate primary producers for losses suffered because of TC Larry. ‘101 Nature of assistance ‘The nature of the assistance that may be given under the scheme is the provision of a loan and grant package for any of the following— (a) restocking; (b) meeting requirements for carrying on production, including— (i) re-planting, restoring or re-establishing areas affected by TC Larry; or (ii) sustenance; or (iii) essential property operations; or

s5 6 s5 Rural and Regional Adjustment Amendment Regulation (No. 2) 2006 No. 73, 2006 (iv) paying rent or rates, or costs of repair or replacement of farm buildings. ‘102 Maximum amount of assistance ‘(1) The maximum amount of a loan and grant package that may be given to an applicant under the scheme is— (a) $200000; or (b) if the authority considers the applicant’s property has sustained extreme damage—$500000. ‘(2) The amount of a grant under a loan and grant package is the lesser of— (a) 25% of the total amount of the loan and grant package; or (b) $50000. ‘103 Eligibility criteria ‘(1) For an applicant to be eligible to receive assistance under the scheme— (a) the applicant’s property must be in the prescribed disaster area; and (b) the applicant’s application for assistance must relate to loss or damage suffered as a result of TC Larry; and (c) the applicant must be in working occupation of the applicant’s property; and (d) the applicant must not own or control liquid assets that are greater in value than an amount the authority considers would be reasonably required for prudent risk management; and (e) the authority must be satisfied that— (i) the applicant took reasonable precautions to minimise loss or damage from TC Larry; and (ii) the applicant’s farming enterprise will be viable with the assistance given; and

s5 7 s5 Rural and Regional Adjustment Amendment Regulation (No. 2) 2006 No. 73, 2006 (f) the authority must receive the applicant’s application for assistance no later than the closing day. ‘(2) A public company, whether acting alone or with another company, is not eligible for assistance under the scheme. ‘104 Security ‘(1) A loan under a loan and grant package given under the scheme must be secured to the satisfaction of the authority. ‘(2) The security required by the authority may be, or include— (a) a mortgage of land or other assets, commensurate with the amount of the loan; or (b) a priority serving document, including, for example, a crop lien or stock mortgage. ‘105 Terms of repayment ‘(1) Subject to subsection (6), the maximum term of a loan under a loan and grant package given to an applicant under the scheme is 9 years. ‘(2) For the first 2 years of the loan— (a) no repayments of the principal are payable; and (b) no interest on the loan will be charged. ‘(3) Repayments of the principal and interest are calculated from the start of the third year of the loan. ‘(4) The initial annual interest rate for the loan is 4%. ‘(5) From the fourth year of the loan— (a) the authority may review the applicant’s financial situation annually to decide whether or not to increase the interest rate; and (b) if the authority considers the applicant’s financial situation has improved, the authority may increase the interest rate up to a commercial rate of interest. ‘(6) The term of the loan may be increased to not more than 10 years if—

s5 8 s5 Rural and Regional Adjustment Amendment Regulation (No. 2) 2006 No. 73, 2006 (a) the loan has been operative for at least 4 years; and (b) the authority considers the increase in the term of the loan is appropriate in the circumstances. ‘106 Applications ‘(1) An application for assistance under the scheme must be— (a) made on the authority’s application form; and (b) accompanied by the documentation stated on the application form. ‘(2) An applicant must give the completed application form— (a) to a commercial lender for referral to the authority; or (b) directly to the authority. ‘(3) Applications for assistance under the scheme must be received by the authority no later than the closing day. ‘Part 10 Natural Disaster Relief—TC Larry (Small Business) Scheme ‘107 Definitions for pt 10 ‘In this part— applicant means a person applying for assistance under the scheme. closing day , for applications, means 31 December 2006. loan and grant package means assistance consisting of a loan and a grant out of the amount of the loan. scheme means the scheme set out under this part. TC Larry means the cyclone known as Tropical Cyclone Larry that affected certain communities in North Queensland in March 2006.

s5 9 s5 Rural and Regional Adjustment Amendment Regulation (No. 2) 2006 No. 73, 2006 ‘108 Purpose of assistance ‘(1) The purpose of assistance under the scheme is to provide assistance to owners of small businesses— (a) whose buildings, plant and equipment or stock have been significantly damaged by TC Larry; and (b) who have sound prospects of long term viability. ‘(2) However, assistance under the scheme is not intended to compensate business owners for losses suffered as a result of TC Larry. ‘109 Nature of assistance ‘The nature of the assistance that may be given under the scheme, for a business, is the provision of a loan and grant package for re-establishing the viable operation of the business, including by doing any of the following— (a) repairing or replacing buildings or plant and equipment; (b) supplying stock for up to 1 month to replace lost stock and maintain liquidity of the business; (c) meeting other requirements for carrying on the business. ‘110 Maximum amount of assistance ‘(1) The amount of a loan and grant package that may be given to an applicant under the scheme— (a) must be based on the authority’s assessment of the applicant’s financial position, including any amount recovered by the applicant under an insurance policy; and (b) must not be more than the amount of the net loss to the applicant’s business as a result of TC Larry. ‘(2) Subject to subsection (1), the maximum amount of a loan and grant package that may be given to an applicant under the scheme is— (a) $200000; or

s 5 10 s 5 Rural and Regional Adjustment Amendment Regulation (No. 2) 2006 No. 73, 2006 (b) if the authority considers the applicant’s business property has sustained extreme damage—$500000. ‘(3) The amount of a grant under a loan and grant package is the lesser of— (a) 25% of the total amount of the loan and grant package; or (b) $50000. ‘111 Eligibility criteria ‘(1) For an applicant to be eligible to receive assistance under the scheme— (a) the applicant must be a sole owner, partnership or proprietary company; and (b) the authority must be satisfied the liquidity of the applicant’s business has been severely affected because of either or both of the following— (i) the cost of essential repairs or replacement of damage to buildings, plant, equipment or stock as a result of TC Larry; (ii) a reduction in the business’ cash flow that is otherwise directly related to TC Larry; and (c) the applicant must not own or control liquid assets that are greater in value than an amount the authority considers would be reasonably required for prudent risk management; and (d) the authority must be satisfied that— (i) the applicant can not repair or replace damaged assets or return to viable operations from the applicant’s own resources without assistance under the scheme; and (ii) with assistance under the scheme, the applicant has reasonable prospects of re-establishing the applicant’s business on a viable basis; and

s 5 11 s 5 Rural and Regional Adjustment Amendment Regulation (No. 2) 2006 No. 73, 2006 (e) the authority receives the applicant’s application for assistance no later than the closing day. ‘(2) A public company, whether acting alone or with another company, is not eligible for assistance under the scheme. ‘112 Security ‘A loan under a loan and grant package given under the scheme must be secured to the satisfaction of the authority. ‘113 Terms of repayment ‘(1) Subject to subsection (6), the maximum term of a loan under a loan and grant package given to an applicant under the scheme is 9 years. ‘(2) For the first 2 years of the loan— (a) no repayments of the principal are payable; and (b) no interest on the loan will be charged. ‘(3) Repayments of the principal and interest are calculated from the start of the third year of the loan. ‘(4) The initial annual interest rate for the loan is 4%. ‘(5) From the fourth year of the loan— (a) the authority may review the applicant’s financial situation annually to decide whether or not to increase the interest rate; and (b) if the authority considers the applicant’s financial situation has improved, the authority may increase the interest rate up to a commercial rate of interest. ‘(6) The term of the loan may be increased to not more than 10 years if— (a) the loan has been operative for at least 4 years; and (b) the authority considers the increase in the term of the loan is appropriate in the circumstances.

s 5 12 s 5 Rural and Regional Adjustment Amendment Regulation (No. 2) 2006 No. 73, 2006 ‘114 Applications ‘(1) An application for assistance under the scheme must be— (a) made on the authority’s application form; and (b) accompanied by the documentation stated on the application form. ‘(2) An applicant must give the completed application form— (a) to a commercial lender for referral to the authority; or (b) directly to the authority. ‘(3) Applications for assistance under the scheme must be received by the authority no later than the closing day.’. ENDNOTES 1 Made by the Governor in Council on 20 April 2006. 2 Notified in the gazette on 21 April 2006. 3 Laid before the Legislative Assembly on . . . 4 The administering agency is the Department of Primary Industries and Fisheries. © State of Queensland 2006